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Innovation Process in Japan in the Early 2000s as Seen from Inventors: Agenda for strengthening innovative capability (Japanese)

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  • ISOGAWA Daiya
  • OHASHI Hiroshi

Abstract

This paper estimates a dynamic oligopoly model of product innovation to evaluate an equilibrium effect of public policy on firms' innovation activities. The model considers a multi-agent Markov-Perfect Nash Equilibrium, allowing for firms' dynamic decision making on innovation activities and entry and exit. The estimation results obtained by using Japanese firm-level data on product innovation identify net positive spillovers among firms' dynamic innovation activities. Simulation exercises based on the obtained estimates indicate that, while the existing subsidies indeed encourage firms' innovation activities, they are far from optimal.

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Bibliographic Info

Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion Papers (Japanese) with number 12034.

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Length: 36 pages
Date of creation: Oct 2012
Date of revision:
Handle: RePEc:eti:rdpsjp:12034

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